In trading, understanding how much you stand to gain or lose is critical. If you’re from a banking or corporate finance background, think of this in terms of notional exposure and currency exchange rather than trading slang like “pips” and “ticks.”

Below is a clear guide for how PnL (Profit and Loss) is calculated on standard 1-lot positions in four of the most traded instruments in the market.

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🔹 1. EURUSD (Euro vs US Dollar)

✅ What does buying 1 lot mean?

You buy €100,000 and pay the equivalent in USD at the market rate.
This is essentially a foreign exchange purchase.

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✅ Buy Example:

• Buy 1 lot EURUSD at 1.1000 → You bought €100,000 and paid $110,000
• Sell at 1.1025 → You now sell €100,000 and receive $110,250

➡️ PnL = (1.1025 – 1.1000) × 100,000 = $250 profit

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🔻 Sell Example:

• Sell 1 lot EURUSD at 1.1000 → You sold €100,000 and received $110,000
• Buy back at 1.0975 → You buy €100,000 for $109,750

➡️ PnL = (1.1000 – 1.0975) × 100,000 = $250 profit

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🪙 2. XAUUSD (Gold priced in US Dollars)

✅ What does buying 1 lot mean?

You buy 100 ounces of gold at the quoted USD price per ounce.

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✅ Buy Example:

• Buy 1 lot XAUUSD at $1,900 → You bought 100 oz = $190,000
• Sell at $1,905 → 100 oz × $1,905 = $190,500

➡️ PnL = ($1,905 – $1,900) × 100 = $500 profit

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🔻 Sell Example:

• Sell 1 lot XAUUSD at $1,900 → 100 oz sold = $190,000
• Buy back at $1,890 → 100 oz × $1,890 = $189,000

➡️ PnL = ($1,900 – $1,890) × 100 = $1,000 profit

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🛢️ 3. US Oil (WTI Crude)

✅ What does buying 1 lot mean?

You’re buying 1,000 barrels of crude oil at the market price.

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✅ Buy Example:

• Buy 1 lot US Oil at $80 → 1,000 barrels = $80,000
• Sell at $82 → 1,000 barrels = $82,000

➡️ PnL = ($82 – $80) × 1,000 = $2,000 profit

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🔻 Sell Example:

• Sell 1 lot US Oil at $80 → You receive $80,000
• Buy back at $77.50 → You pay $77,500

➡️ PnL = ($80 – $77.50) × 1,000 = $2,500 profit

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📈 4. NASDAQ Index CFD

✅ What does buying 1 lot mean?

You’re trading a contract for difference (CFD) where typically,
1 index point = $1 per lot (depending on the broker).

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✅ Buy Example:

• Buy 1 lot NAS100 at 15,000
• Sell at 15,250

➡️ PnL = (15,250 – 15,000) × $1 = $250 profit

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🔻 Sell Example:

• Sell 1 lot NAS100 at 15,000
• Buy back at 14,800

➡️ PnL = (15,000 – 14,800) × $1 = $200 profit

🔎 Note: Some brokers may use $20 per point. Always check contract size.

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Instrument	1 Lot =	Buy Example Profit	Sell Example Profit
EURUSD	€100,000	$250 (from 1.1000 → 1.1025)	$250 (from 1.1000 → 1.0975)
XAUUSD	100 oz	$500 (from $1,900 → $1,905)	$1,000 (from $1,900 → $1,890)
US Oil	1,000 barrels	$2,000 (from $80 → $82)	$2,500 (from $80 → $77.50)
NAS100	1 index point = $1	$250 (from 15,000 → 15,250)	$200 (from 15,000 → 14,800)

💡 Final Thought

This explanation demystifies how profits and losses are calculated based on contract size and market movement. Whether you’re a banker, portfolio analyst, or trader, understanding the mechanics helps in managing exposure and making better-informed decisions.